497K 1 afmf497k.htm

 

American Funds
Mortgage Fund®

Summary prospectus

November 1, 2019
(as supplemented June 30, 2020)

 

 

 

 
Class A C T F-1 F-2 F-3 529-A 529-C 529-E 529-T
  MFAAX MFACX TFMFX MFAEX MFAFX AFFMX CMFAX CMFCX CMFEX TMFMX
Class 529-F-1 R-1 R-2 R-2E R-3 R-4 R-5E R-5 R-6  
  CMFFX RMAAX RMABX RMBEX RMACX RMAEX RMAHX RMAFX RMAGX  

 

Beginning January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, we intend to no longer mail paper copies of the fund’s shareholder reports, unless specifically requested from American Funds by Capital Group or your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on our website (capitalgroup.com); you will be notified by mail and provided with a website link to access the report each time a report is posted. If you have already elected to receive shareholder reports electronically, you will not be affected by this change and do not need to take any action. If you prefer to receive shareholder reports and other communications electronically, you may update your mailing preferences with your financial intermediary, or enroll in e-delivery at capitalgroup.com (for accounts held directly with the fund).

 

You may elect to receive paper copies of all future reports free of charge. If you invest through a financial intermediary, you may contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the fund, you may inform American Funds that you wish to continue receiving paper copies of your shareholder reports by contacting us at (800) 421-4225. Your election to receive paper reports will apply to all funds held with American Funds or through your financial intermediary.

 

Before you invest, you may want to review the fund’s prospectus and statement of additional information, which contain more information about the fund and its risks. You can find the fund’s prospectus, statement of additional information, reports to shareholders and other information about the fund online at capitalgroup.com/prospectus. You can also get this information at no cost by calling (800) 421-4225 or by sending an email request to prospectus@americanfunds.com. The current prospectus and statement of additional information, each dated November 1, 2019 (and in each case, as supplemented to date), are incorporated by reference into this summary prospectus.

 
 

 

Investment objective The fund’s investment objective is to provide current income and preservation of capital.

Fees and expenses of the fund This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. In addition to the fees and expenses described below, you may also be required to pay brokerage commissions on purchases and sales of Class F-2, F-3 or 529-F-1 shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in American Funds. More information about these and other discounts is available from your financial professional, in the “Sales charge reductions and waivers” sections on page 37 of the prospectus and on page 75 of the fund’s statement of additional information, and in the sales charge waiver appendix to this prospectus.

Shareholder fees (fees paid directly from your investment)
Share class: A 529-A C and
529-C
529-E T and
529-T
All F and 529-F share classes All R
share
classes
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 3.75% 3.50% none none 2.50% none none
Maximum deferred sales charge (load) (as a percentage of the amount redeemed) 1.001 1.001 1.00% none none none none
Maximum sales charge (load) imposed on reinvested dividends none none none none none none none
Redemption or exchange fees none none none none none none none

 

 

American Funds Mortgage Fund / Summary prospectus     1

 
 

 

Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)
Share class: A C T F-1 F-2 F-3 529-A
Management fees 0.24% 0.24% 0.24% 0.24% 0.24% 0.24% 0.24%
Distribution and/or service (12b-1) fees 0.25 1.00 0.25 0.25 none none 0.24
Other expenses2 0.22 0.22 0.21 0.18 0.14 0.05 0.26
Total annual fund operating expenses 0.71 1.46 0.70 0.67 0.38 0.29 0.74

 

Share class: 529-C 529-E 529-T 529-F-1 R-1 R-2 R-2E
Management fees 0.24% 0.24% 0.24% 0.24% 0.24% 0.24% 0.24%
Distribution and/or service (12b-1) fees 1.00 0.50 0.25 0.00 1.00 0.75 0.60
Other expenses2 0.27 0.21 0.25 0.26 0.20 0.40 0.34
Total annual fund operating expenses 1.51 0.95 0.74 0.50 1.44 1.39 1.18
Expense reimbursement 0.053
Total annual fund operating expenses after expense reimbursement 1.51 0.95 0.74 0.50 1.44 1.39 1.13

 

Share class: R-3 R-4 R-5E R-5 R-6    
Management fees 0.24% 0.24% 0.24% 0.24% 0.24%    
Distribution and/or service (12b-1) fees 0.50 0.25 none none none    
Other expenses2 0.24 0.16 0.23 0.10 0.04    
Total annual fund operating expenses 0.98 0.65 0.47 0.34 0.28    
Expense reimbursement 0.023    
Total annual fund operating expenses after expense reimbursement 0.98 0.65 0.45 0.34 0.28    
1A contingent deferred sales charge of 1.00% applies on certain redemptions made within 18 months following purchases of $1 million or more made without an initial sales charge. Contingent deferred sales charge is calculated based on the lesser of the offering price and market value of shares being sold.
2Restated to reflect current fees.
3The investment adviser is currently reimbursing a portion of the other expenses. This reimbursement will be in effect through at least November 1, 2020. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time.

 

2     American Funds Mortgage Fund / Summary prospectus

 
 

Example This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds.

The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. The example reflects the expense reimbursement described above through the expiration date of such reimbursement and total annual fund operating expenses thereafter. You may be required to pay brokerage commissions on your purchases and sales of Class F-2, F-3 or 529-F-1 shares of the fund, which are not reflected in the example. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

Share class: A C T F-1 F-2 F-3 529-A 529-C 529-E 529-T 529-F-1 R-1 R-2
1 year $   445 $   249 $   320 $  68 $  39 $  30 $   423 $   254 $     97 $   324 $  51 $   147 $   142
3 years 594 462 468 214 122 93 578 477 303 481 160 456 440
5 years 755 797 630 373 213 163 747 824 525 651 280 787 761
10 years 1,224 1,543 1,099 835 480 368 1,236 1,313 1,166 1,145 628 1,724 1,669

 

Share class: R-2E R-3 R-4 R-5E R-5 R-6 For the share classes listed to the right, you would pay the following if you did not redeem your shares: Share class: C 529-C
1 year $   115 $   100 $  66 $  46 $  35 $  29 1 year $   149 $   154
3 years 370 312 208 149 109 90 3 years 462 477
5 years 644 542 362 261 191 157 5 years 797 824
10 years 1,427 1,201 810 590 431 356 10 years 1,543 1,313

 

Portfolio turnover The fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s investment results. During the most recent fiscal year, the fund’s portfolio turnover rate was 605% of the average value of its portfolio.

Principal investment strategies Normally at least 80% of the fund’s assets will be invested in mortgage-related securities, including securities collateralized by mortgage loans and contracts for future delivery of such securities (such as to be announced contracts and mortgage dollar rolls). The fund will invest primarily in mortgage-related securities that are sponsored or guaranteed by the U.S. government, such as securities issued by government-sponsored entities that are not backed by the full faith and credit of the U.S. government, and nongovernment mortgage-related securities that are rated in the Aaa or AAA rating category (by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser) or unrated but determined to be of equivalent quality by the fund’s investment adviser. The fund may also invest in debt issued by federal agencies. In the case of to be announced contracts, each contract for future delivery is normally of short duration.

The fund may also invest in certain derivative instruments, such as futures contracts and swaps. A derivative is a financial contract, the value of which is based on the value of an underlying financial asset (such as a stock, bond or currency), a reference rate or a market index. The fund may invest in a derivative only if, in the opinion of the investment adviser, the expected risks and rewards of the proposed investment are consistent with the investment objective and strategies of the fund as disclosed in this prospectus and in the fund’s statement of additional information.

 

American Funds Mortgage Fund / Summary prospectus     3

 
 

The investment adviser uses a system of multiple portfolio managers in managing the fund’s assets. Under this approach, the portfolio of the fund is divided into segments managed by individual managers.

The fund relies on the professional judgment of its investment adviser to make decisions about the fund’s portfolio investments. The basic investment philosophy of the investment adviser is to seek to invest in attractively priced securities that, in its opinion, represent good, long-term investment opportunities. The investment adviser believes that an important way to accomplish this is by analyzing various factors, which may include the credit strength of the issuer, prices of similar securities issued by comparable issuers, anticipated changes in interest rates, general market conditions and other factors pertinent to the particular security being evaluated. Securities may be sold when the investment adviser believes that they no longer represent relatively attractive investment opportunities.

Principal risks This section describes the principal risks associated with investing in the fund. You may lose money by investing in the fund. The likelihood of loss may be greater if you invest for a shorter period of time.

Investing in mortgage-related and other asset-backed securities — Mortgage-related securities, such as mortgage-backed securities, and other asset-backed securities, include debt obligations that represent interests in pools of mortgages or other income-bearing assets, such as consumer loans or receivables. Such securities often involve risks that are different from or more acute than the risks associated with investing in other types of debt securities. Mortgage-backed and other asset-backed securities are subject to changes in the payment patterns of borrowers of the underlying debt, potentially increasing the volatility of the securities and the fund’s net asset value. When interest rates fall, borrowers are more likely to refinance or prepay their debt before its stated maturity. This may result in the fund having to reinvest the proceeds in lower yielding securities, effectively reducing the fund’s income. Conversely, if interest rates rise and borrowers repay their debt more slowly than expected, the time in which the mortgage-backed and other asset-backed securities are paid off could be extended, reducing the fund’s cash available for reinvestment in higher yielding securities. Mortgage-backed securities are also subject to the risk that underlying borrowers will be unable to meet their obligations and the value of property that secures the mortgages may decline in value and be insufficient, upon foreclosure, to repay the associated loans. Investments in asset-backed securities are subject to similar risks.

Market conditions — The prices of, and the income generated by, the securities held by the fund may decline – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

Economies and financial markets throughout the world are highly interconnected. Economic, financial or political events, trading and tariff arrangements, wars, terrorism, cybersecurity events, natural disasters, public health emergencies (such as the spread of infectious disease) and other circumstances in one country or region could have impacts on global economies or markets. As a result, whether or not the fund invests in securities of issuers located in or with significant exposure to the countries affected, the value and

 

4     American Funds Mortgage Fund / Summary prospectus

 
 

liquidity of the fund’s investments may be negatively affected by developments in other countries and regions.

Issuer risks — The prices of, and the income generated by, securities held by the fund may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation related to the issuer, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

Investing in debt instruments — The prices of, and the income generated by, bonds and other debt securities held by the fund may be affected by changing interest rates and by changes in the effective maturities and credit ratings of these securities.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. A general rise in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from the fund. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before its stated maturity, which may result in the fund failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker, and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. A downgrade or default affecting any of the fund’s securities could cause the value of the fund’s shares to decrease. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged, in part, by the credit ratings of the debt securities in which the fund invests. However, ratings are only the opinions of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The fund’s investment adviser relies on its own credit analysts to research issuers and issues in seeking to assess credit and default risks.

Liquidity risk — Certain fund holdings may be or may become difficult or impossible to sell, particularly during times of market turmoil. Liquidity may be impacted by the lack of an active market for a holding, legal or contractual restrictions on resale, or the reduced number and capacity of market participants to make a market in such holding. Market prices for less liquid or illiquid holdings may be volatile, and reduced liquidity may have an adverse impact on the market price of such holdings. Additionally, the sale of less liquid or illiquid holdings may involve substantial delays (including delays in settlement) and additional costs and the fund may be unable to sell such holdings when necessary to meet its liquidity needs or may be forced to sell at a loss.

Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates and the credit rating of the U.S. government. Securities issued by government-sponsored entities

 

American Funds Mortgage Fund / Summary prospectus     5

 
 

and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.

Investing in future delivery contracts — The fund may enter into contracts, such as to-be-announced contracts and mortgage dollar rolls, that involve the fund selling mortgage-related securities and simultaneously contracting to repurchase similar securities for delivery at a future date at a predetermined price. This can increase the fund’s market exposure, and the market price of the securities that the fund contracts to repurchase could drop below their purchase price. While the fund can preserve and generate capital through the use of such contracts by, for example, realizing the difference between the sale price and the future purchase price, the income generated by the fund may be reduced by engaging in such transactions. In addition, these transactions may increase the turnover rate of the fund.

Investing in inflation-linked bonds — The values of inflation-linked bonds generally fluctuate in response to changes in real interest rates — i.e., rates of interest after factoring in inflation. A rise in real interest rates may cause the prices of inflation-linked securities to fall, while a decline in real interest rates may cause the prices to increase. Inflation-linked bonds may experience greater losses than other debt securities with similar durations when real interest rates rise faster than nominal interest rates. There can be no assurance that the value of an inflation-linked security will be directly correlated to changes in interest rates; for example, if interest rates rise for reasons other than inflation, the increase may not be reflected in the security’s inflation measure.

Investing in inflation-linked bonds may also reduce the fund’s distributable income during periods of deflation. If prices for goods and services decline throughout the economy, the principal and income on inflation-linked securities may decline and result in losses to the fund.

Investing in derivatives — The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds. Changes in the value of a derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a derivative instrument may expose the fund to losses in excess of its initial investment. Derivatives may be difficult to value, difficult for the fund to buy or sell at an opportune time or price and difficult, or even impossible, to terminate or otherwise offset. The fund’s use of derivatives may result in losses to the fund, and investing in derivatives may reduce the fund’s returns and increase the fund’s price volatility. The fund’s counterparty to a derivative transaction (including, if applicable, the fund’s clearing broker, the derivatives exchange or the clearinghouse) may be unable or unwilling to honor its financial obligations in respect of the transaction. In certain cases, the fund may be hindered or delayed in exercising remedies against or closing out derivative instruments with a counterparty, which may result in additional losses.

Management — The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and analyses, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and may not produce the desired results. This could cause the fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

6     American Funds Mortgage Fund / Summary prospectus

 
 

It is important to note that neither your investment in the fund nor the fund’s yield is guaranteed by the U.S. government. Your investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. You should consider how this fund fits into your overall investment program.

Investment results The following bar chart shows how the fund’s investment results have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with a broad measure of securities market results and other applicable measures of market results. This information provides some indication of the risks of investing in the fund. The Lipper Intermediate U.S. Government Funds Average includes mutual funds that disclose investment objectives and/or strategies reasonably comparable to those of the fund. The Lipper GNMA Funds Average includes funds that disclose investment objectives and/or strategies reasonably comparable to those of the fund. Past investment results (before and after taxes) are not predictive of future investment results. Updated information on the fund’s investment results can be obtained by visiting capitalgroup.com.

 

American Funds Mortgage Fund / Summary prospectus     7

 
 

 

Average annual total returns For the periods ended December 31, 2018 (with maximum sales charge):
Share class Inception date 1 year 5 years Lifetime
A − Before taxes 11/1/2010 –3.28% 1.34% 1.47%
− After taxes on distributions   –3.98 0.50 0.66
− After taxes on distributions and sale of fund shares –1.95 0.66 0.80

 

Share classes (before taxes) Inception date 1 year 5 years Lifetime
C 11/1/2010 –1.19% 1.32% 1.14%
F-1 11/1/2010 0.47 2.11 1.92
F-2 11/1/2010 0.86 2.41 2.20
F-3 1/27/2017 0.86 N/A 1.16
529-A 11/1/2010 –3.26 1.29 1.39
529-C 11/1/2010 –1.34 1.25 1.07
529-E 11/1/2010 0.20 1.82 1.61
529-F-1 11/1/2010 0.65 2.26 2.07
R-1 11/1/2010 –0.28 1.57 1.46
R-2 11/1/2010 –0.25 1.30 1.21
R-2E 8/29/2014 0.17 N/A 1.31
R-3 11/1/2010 0.15 1.79 1.66
R-4 11/1/2010 0.50 2.17 1.97
R-5E 11/20/2015 0.70 N/A 1.41
R-5 11/1/2010 0.80 2.43 2.23
R-6 11/1/2010 0.86 2.50 2.29

 

Indexes 1 year 5 years Lifetime
(from Class A inception)
Bloomberg Barclays U.S. Mortgage Backed Securities Index (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 0.99% 2.53% 2.34%
Lipper Intermediate U.S. Government Funds Average (reflects no deductions for sales charges, account fees or U.S. federal income taxes) 0.47 1.66 1.56
Lipper GNMA Funds Average (reflects no deductions for sales charges, account fees or U.S. federal income taxes) 0.41 1.65 1.71
Class A annualized 30-day yield at August 31, 2019: 1.78%
(For current yield information, please call American FundsLine® at (800) 325-3590.)

 

After-tax returns are shown only for Class A shares; after-tax returns for other share classes will vary. After-tax returns are calculated using the highest individual federal income tax rates in effect during each year of the periods shown and do not reflect the impact of state and local taxes. Your actual after-tax returns depend on your individual tax situation and likely will differ from the results shown above. In addition, after-tax returns are not relevant if you hold your fund shares through a tax-favored arrangement, such as a 401(k) plan, individual retirement account (IRA) or 529 college savings plan.

 

8     American Funds Mortgage Fund / Summary prospectus

 
 

Management

Investment adviser Capital Research and Management CompanySM
Portfolio managers The individuals primarily responsible for the portfolio management of the fund are:

Portfolio manager/
Fund title (if applicable)
Portfolio
manager
experience
in this fund
Primary title
with investment adviser
David J. Betanzos President 6 years Partner – Capital Fixed Income Investors
Fergus N. MacDonald Senior Vice President 9 years Partner – Capital Fixed Income Investors

 

Purchase and sale of fund shares The minimum amount to establish an account for all share classes is normally $250 and the minimum to add to an account is $50. For a payroll deduction retirement plan account, payroll deduction savings plan account or employer-sponsored 529 account, the minimum is $25 to establish or add to an account. For accounts with Class F-3 shares held and serviced by the fund’s transfer agent, the minimum investment amount is $1 million.

If you are a retail investor, you may sell (redeem) shares on any business day through your dealer or financial advisor or by writing to American Funds Service Company® at P.O. Box 6007, Indianapolis, Indiana 46206-6007; telephoning American Funds Service Company at (800) 421-4225; faxing American Funds Service Company at (888) 421-4351; or accessing our website at capitalgroup.com. Please contact your plan administrator or recordkeeper to sell (redeem) shares from your retirement plan.

Tax information Dividends and capital gain distributions you receive from the fund are subject to federal income taxes and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-favored.

Payments to broker-dealers and other financial intermediaries If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and the fund’s distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial advisor to recommend the fund over another investment. Ask your individual financial advisor or visit your financial intermediary’s website for more information.

 

American Funds Mortgage Fund / Summary prospectus     9

 
 

 

 

You can access the fund’s statutory prospectus or SAI at capitalgroup.com/prospectus.
MFGEIPX-042-1119P
Litho in USA CGD/DFS/10128
Investment Company File No. 811-22449

 

Summary Prospectus
Supplement

June 30, 2020

 

 

 

 

 

For the following funds with summary prospectuses dated
August 1, 2019 – June 1, 2020 (as supplemented to date)

 


AMCAP Fund® (AMCAP)

American Balanced Fund® (AMBAL)

American Funds Corporate Bond Fund® (CBF)

American Funds Developing World Growth and Income FundSM (DWGI)

American Funds Emerging Markets Bond Fund® (EMBF)

American Funds Global Balanced FundSM (GBAL)
American Funds Global Insight FundSM (GIF)

American Funds Inflation Linked Bond Fund® (ILBF)
American Funds International Vantage FundSM (IVE)

American Funds Mortgage Fund®(AFMF)

American Funds Multi-Sector Income FundSM (MSI)

American Funds Strategic Bond FundSM (SBF)
American Funds U.S. Government Money Market FundSM (MMF)

 

American High-Income Trust® (AHIT)

American Mutual Fund® (AMF)

The Bond Fund of America® (BFA)

Capital Income Builder® (CIB)

Capital World Bond Fund® (WBF)

Capital World Growth and Income Fund® (WGI)

EuroPacific Growth Fund® (EUPAC)

Fundamental Investors® (FI)

The Growth Fund of America® (GFA)

The Income Fund of America® (IFA)

Intermediate Bond Fund of America® (IBFA)

International Growth and Income FundSM (IGI)

The Investment Company of America® (ICA)

The New Economy Fund® (NEF)

New Perspective Fund® (NPF)

New World Fund® (NWF)

Short-Term Bond Fund of America® (STBF)

SMALLCAP World Fund® (SCWF)

U.S. Government Securities Fund® (GVT)

Changes apply to all funds unless otherwise noted.

1. The following replaces the second sentence in the first paragraph of the “Fee and expenses of the fund” section of the summary prospectus for all of the funds listed above (other than AMCAP, MSI, and EUPAC) to read as follows:

In addition to the fees and expenses described below, you may also be required to pay brokerage commissions on purchases and sales of Class F-2, F-3 or 529-F-1 shares of the fund.


 
 

 

2. The “Shareholder fees” table in the “Fees and expenses of the fund” section of the summary prospectus for each of the funds listed below is amended to read as follows:

·          AMBAL

·          AMCAP

·          AMF

·          CIB

·          DWGI

·          EUPAC

·          FI

·          GBAL

·          GFA

·          GIF

·          ICA

·          IFA

·          IGI

·          IVE

·          NEF

·          NPF

·          NWF

·          SCWF

·          WGI

 

Shareholder fees (fees paid directly from your investment)
Share class: A 529-A C and
529-C
529-E T and
529-T
All F and 529-F share classes All R
share
classes
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 5.75% 3.50% none none 2.50% none none
Maximum deferred sales charge (load) (as a percentage of the amount redeemed) 1.001 1.001 1.00% none none none none
Maximum sales charge (load) imposed on reinvested dividends none none none none none none none
Redemption or exchange fees none none none none none none none


 

3. The “Shareholder fees” table in the “Fees and expenses of the fund” section of the summary prospectus for each of the funds listed below is amended to read as follows:

·          AFMF

·          AHIT

·          BFA

·          CBF

·          EMBF

·          GVT

·          MSI

·          SBF

·          WBF

 

Shareholder fees (fees paid directly from your investment)
Share class: A 529-A C and
529-C
529-E T and
529-T
All F and 529-F share classes All R
share
classes
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 3.75% 3.50% none none 2.50% none none
Maximum deferred sales charge (load) (as a percentage of the amount redeemed) 1.001 1.001 1.00% none none none none
Maximum sales charge (load) imposed on reinvested dividends none none none none none none none
Redemption or exchange fees none none none none none none none
 
 


4. The “Shareholder fees” table in the “Fees and expenses of the fund” section of the summary prospectus for each of the funds listed below is amended to read as follows. Except as indicated below, footnotes in the summary prospectus remain unchanged.

·          IBFA ·          ILBF ·          STBF

 

Shareholder fees (fees paid directly from your investment)
Share class: A 529-A C and
529-C
529-E T and
529-T
All F and 529-F share classes All R
share
classes
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 2.50% 2.50% none none 2.50% none none
Maximum deferred sales charge (load) (as a percentage of the amount redeemed) 0.751 1.001 1.00% none none none none
Maximum sales charge (load) imposed on reinvested dividends none none none none none none none
Redemption or exchange fees none none none none none none none

1 A contingent deferred sales charge of 0.75% for Class A shares and 1.00% for Class 529-A shares applies on certain redemptions made within 18 months following purchases of $500,000 or more for Class A and $1 million or more for Class 529-A made without an initial sales charge. Contingent deferred sales charge is calculated based on the lesser of the offering price and market value of shares being sold.



5. In the third paragraph of the “Fee and expenses of the fund” section of the summary prospectus for all of the funds listed above (other than AMCAP, MSI, and EUPAC), replace the following sentence:

You may be required to pay brokerage commissions on your purchases and sales of Class F-2 or F-3 shares of the fund, which are not reflected in the example.

With:

You may be required to pay brokerage commissions on your purchases and sales of Class F-2, F-3 or 529-F-1 shares of the fund, which are not reflected in the example.



 
 

6. The table under the heading “Example” in the “Fees and expenses of the fund” section of the summary prospectus for each of the funds listed below is amended to reflect revisions as provided.

  1 year 3 years 5 years
Class: 529-A 529-A 529-A
AMCAP $421 $572 $737
EUPAC 435 615 810
GFA 418 563 721
GIF 452 669 904
IVE 461 697 950
NEF 431 603 789
NPF 429 597 779
NWF 452 669 904
SCWF 458 687 935
AMF 414 551 700
DWGI 480 754 1,048
FI 414 551 700
ICA 412 545 689
IGI 444 642 857
WGI 430 600 784
CIB 414 551 700
IFA 411 542 684
AMBAL 412 545 689
GBAL 436 618 815
           

 

  10 years
  With redemptions Without redemptions
Class: C 529-A 529-C C 529-C
AMCAP $1,520 $1,213 $1,290 $1,520 $1,290
EUPAC 1,688 1,374 1,455 1,688 1,455
GFA 1,475 1,178 1,255 1,475 1,255
GIF 1,812 1,577 1,616 1,812 1,616
IVE 1,902 1,677 1,716 1,902 1,716
NEF 1,643 1,328 1,410 1,643 1,410
NPF 1,599 1,305 1,382 1,599 1,382
NWF 1,897 1,577 1,658 1,897 1,658
SCWF 1,943 1,643 1,724 1,943 1,724
AMF 1,421 1,132 1,204 1,421 1,204
DWGI 2,187 1,885 1,965 2,187 1,965
FI 1,441 1,132 1,209 1,441 1,209
ICA 1,415 1,109 1,186 1,415 1,186
IGI 1,779 1,476 1,552 1,779 1,552
WGI 1,621 1,317 1,393 1,621 1,393
CIB 1,429 1,132 1,204 1,429 1,204
             
 
 

 

IFA 1,395 1,097 1,169 1,395 1,169
AMBAL 1,398 1,109 1,180 1,398 1,180
GBAL 1,680 1,385 1,461 1,680 1,461

 

  1 year 3 years 5 years
Class: 529-A 529-A 529-A
AFMF $423 $578 $747
AHIT 426 587 763
BFA 414 551 700
CBF 439 635 848
EMBF 451 670 907
GVT 417 560 715
IBFA 317 459 614
ILBF 321 471 635
MSI 445 659 889
SBF 439 631 840
STBF 321 471 635
WBF 445 648 868
         

 

  10 years  
  With redemptions Without redemptions
Class: C 529-A 529-C C 529-C
AFMF $1,543 $1,236 $1,313 $1,543 $1,313
AHIT 1,565 1,271 1,342 1,565 1,342
BFA 1,429 1,132 1,204 1,429 1,204
CBF 1,718 1,461 1,511 1,718 1,511
EMBF 1,895 1,586 1,667 1,895 1,667
GVT 1,480 1,167 1,244 1,480 1,244
IBFA 1,446 1,064 1,231 1,446 1,231
ILBF 1,522 1,110 1,283 1,522 1,283
MSI 1,775 1,550 1,590 1,775 1,590
SBF 1,755 1,440 1,521 1,755 1,521
STBF 1,500 1,110 1,278 1,500 1,278
WBF 1,801 1,498 1,574 1,801 1,574
               


 

7. The following is added to the end of “Market conditions” in the “Principal risks” section of the summary prospectus for each of the funds listed above to read as follows:

Economies and financial markets throughout the world are highly interconnected. Economic, financial or political events, trading and tariff arrangements, wars, terrorism, cybersecurity events, natural disasters, public health emergencies (such as the spread of infectious disease) and other circumstances in one country or region could have impacts on global economies or markets. As a result, whether or not the fund invests in

 
 

securities of issuers located in or with significant exposure to the countries affected, the value and liquidity of the fund’s investments may be negatively affected by developments in other countries and regions.


 

 

 

 

 

 

 

 

 

 

Keep this supplement with your summary prospectus.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lit. No. MFGEBS-411-0620P CGD/AFD/10039-S81142

 

THE FUND MAKES AVAILABLE A SPANISH TRANSLATION OF THE ATTACHED SUMMARY PROSPECTUS AND SUMMARY PROSPECTUS SUPPLEMENT IN CONNECTION WITH THE PUBLIC OFFERING AND SALE OF ITS SHARES. THE ATTACHED ENGLISH LANGUAGE SUMMARY PROSPECTUS AND SUMMARY PROSPECTUS SUPPLEMENT ARE A FAIR AND ACCURATE REPRESENTATION OF THE SPANISH EQUIVALENT.

 

/s/ STEVEN I. KOSZALKA
  STEVEN I. KOSZALKA
  SECRETARY